Approach
At Exchange Solutions, we utilize our Value Exchange Optimization™ (VEO) approach to shape all of our solutions.
Value exchange is based on the oldest form of commerce: bartering. We recognize that each party in a transaction has something of value to offer the other party. With VEO, we use our proprietary technology to automate and optimize their negotiation process.
We develop client-specific rules, based on underlying product economics, to ensure that every transaction that occurs through the negotiation process is in the best interests of both parties - whether the relationship is company to customer, company to company, or affinity organization to members.
How it Works
These are the steps we take in designing a company to customer solution, based on Value Exchange Optimization:
- We quantify the economic value of each customer's existing behaviors, the economic value if that customer behaved in an optimal manner, and the resultant value gap. We then identify the largest gaps between current customer behaviors and "full potential", and we prioritize those areas where a successful VEO-based solution would result in the greatest increment of profitability.
- We design a VEO program to reward each customer's incremental behavior changes.
- Using a custom-designed web-based solution, we offer the customer a choice of incentives, highlighting the relevant products and/or services that the company is willing to provide in exchange for the desired behavior changes.
- We structure the offers to ensure that, whatever the customer chooses, our client will generate a positive return on investment, based on the ratio of the value of the behavior changes versus the cost of the products and/or services provided to engender those behavior changes.
- We treat each customer individually and holistically. We don't just focus on one customer behavior. We instead identify and line-up multiple behavior changes. Our VEO approach allows us to move the customer quickly though a set of behaviors, therefore achieving ROI for the program more quickly.
- We build a continuous learning loop so that, over time, the VEO offers become increasingly refined and relevant, as well as more efficient at driving behavior changes.
Benefits for Our Clients
- Cost-Effective Promotion: We promote our clients' brand to existing customers.
- Greater Overall Value: We help our clients maximize the value of their customer franchise and, therefore, their market value.
- Effective Marketing: We dramatically increase the efficiency of the marketing spend by eliminating guessing and trial and error in promotions.
- Satisfied Customers: Allowing customers to choose their own offers and incentives lets them feel more in control of the relationship. This leads to significantly higher levels of customer engagement, satisfaction and retention.